TLDR
- Applied Digital signs $5B AI lease, but stock dips amid market uncertainty.
- $5B hyperscaler deal boosts APLD’s AI footprint, yet shares take a hit.
- Applied Digital expands Polaris Forge 2, stock slides despite massive deal.
- APLD lands a $5B contract, grows to 600MW leased, but stock moves lower.
- Stock falls as APLD inks $5B lease with top hyperscaler at new AI campus.
Applied Digital (APLD) traded lower at $31.28, down 3.86% by mid-morning, even after announcing a $5 billion lease agreement with the U.S.-based investment-grade hyperscaler.
Applied Digital Corporation, APLD
The contract covers 200 megawatts of critical IT load at the company’s Polaris Forge 2 Campus in North Dakota. Despite the market dip, the deal marks one of Applied Digital’s most significant milestones, strengthening its presence in large-scale AI infrastructure development.
$5 Billion Hyperscaler Lease Strengthens Growth Outlook
APLD entered into a 15-year lease with a major hyperscaler for its under-construction Polaris Forge 2 Campus. The agreement secures approximately $5 billion in contracted revenue and includes an option for an additional 800 megawatts. This expansion potentially positions Applied Digital to scale rapidly and reinforce its dominance in high-performance computing.
The company designed the Polaris Forge 2 Campus for AI and HPC infrastructure requiring efficiency and scalability. It spans over 900 acres and targets a power usage effectiveness (PUE) of 1.18, emphasizing sustainability and operational performance. Construction is phased, with initial operations scheduled to begin in 2026 and full 200-megawatt capacity expected by 2027.
APLD continues to expand its leased capacity across North Dakota, reaching a combined 600 megawatts between its two campuses. The company’s consistent execution highlights its ability to deliver next-generation data centers faster than many peers. Moreover, it underscores Applied Digital’s focus on speed, efficiency, and sustainable infrastructure solutions for AI and hyperscale computing.
Polaris Forge 2 Enhances Applied Digital’s Infrastructure Portfolio
The Polaris Forge 2 Campus will enhance APLD infrastructure footprint through advanced design and operational capabilities. It integrates liquid cooling systems and near-zero water consumption, aligning with environmental standards and modern energy demands. The project supports the company’s “Different by Design” approach, emphasizing responsible construction and optimized site selection.
Applied Digital’s total hyperscale leasing now includes partnerships with two of the world’s largest computing firms. These collaborations expand its AI infrastructure portfolio and strengthen its credibility in the digital infrastructure sector. As the company accelerates its campus development, it aims to meet increasing demand for energy-efficient data centers across the United States.
The company’s management emphasized that rapid execution remains the key to maintaining leadership in this competitive market. APLD seeks to translate this operational momentum into sustained revenue growth over the next decade. The Polaris Forge 2 project represents both a commercial and technological advancement for the company’s long-term strategy.
Expansion Follows Series of Major Agreements
APLD recently secured a 150-megawatt lease with CoreWeave at its Polaris Forge 1 Campus. It entered a $5 billion AI infrastructure partnership with Macquarie Asset Management earlier this year. These milestones signal continued confidence in the company’s ability to scale high-capacity AI infrastructure efficiently.
The company also gained recognition as one of the fastest-growing firms in Texas, topping the Dallas Business Journal’s Fast 50 list. This ranking highlights its rapid operational growth and increasing influence within the U.S. data center market. Its ongoing expansion demonstrates a strategic commitment to innovation and market leadership.
Although APLD shares fell in early trading, the company’s fundamentals remain strong, supported by multi-billion-dollar contracts. Its continued investment in AI-focused campuses indicates a long-term vision for sustained expansion. With its growing footprint and steady execution, Applied Digital maintains momentum in reshaping the nation’s AI infrastructure landscape.
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